In a world dominated by technology, Walmart—a long-established retail empire—has not only maintained its relevance but also emerged as a leader with the highest revenue in the world and a valuation that surpasses tech powerhouses like Google, Apple, and Microsoft. What makes a traditional retailer command such a high level of market confidence?
In the fiscal year 2024 (ending January 2025), Walmart reported total revenue of $681 billion, outpacing the combined revenue of Alphabet (Google) and Microsoft.
Even more striking is Walmart’s valuation, with a price-to-earnings (P/E) ratio of 42, exceeding that of Alphabet (21), Apple (31), Meta (27), and Microsoft (38). This signals the market’s strong belief in Walmart’s long-term potential and strategic adaptability.
While many experts predicted that traditional retail would be eclipsed by e-commerce, Walmart has taken a different path—not only surviving but thriving.
One pivotal move was the launch of Walmart+ in 2020, a subscription service priced at $98 per year. The membership offers benefits such as unlimited free deliveries, faster checkout, fuel discounts, and even Walmart Cash—a cashback system applicable to travel expenses like hotels and flights.
These services deepen customer loyalty while generating stable, recurring revenue. In fiscal 2025, Walmart+ membership fees rose 21% year-over-year, bringing in approximately $6 billion in revenue.
But the real game-changer for Walmart lies in Walmart Pay, the company’s proprietary payment platform embedded in its app.
Walmart Pay enables the collection of valuable customer data—order history, shopping habits, voucher usage, and more. In today’s digital economy, this data is gold, allowing Walmart to create precise customer profiles and target ads with pinpoint accuracy.
Like many retailers offering loyalty programs, Walmart uses this data not just to serve customers—but to sell insights to advertisers.
Leveraging its vast trove of consumer data, Walmart has built Walmart Connect, a fast-growing advertising ecosystem offering brands direct access to Walmart customers both online and in-store.
Walmart Connect spans across:
Personalized product recommendations on the Walmart app and website
Over 170,000 ad placements in physical stores
Walmart Radio ads and self-checkout screen promos
Bluetooth-powered notifications that deliver location-based offers in real time
According to Walmart’s 2025 financial report, global ad revenue surged 27% year-over-year, reaching $4.4 billion. With estimated margins of 60–80%, advertising is quickly becoming one of Walmart’s most profitable business units.
CEO Doug McMillon emphasized this shift, stating:
“Our evolving business model—with diversified, higher-margin revenue streams like advertising and membership—has helped grow operating income faster than sales, despite ongoing challenges.”
In fact, while Walmart’s total revenue grew 4% in FY2024, operating income rose by more than 8%, driven by these higher-margin business lines.
Thanks to its strategic reinvention, Walmart now boasts a P/E ratio over 42 and a P/BV ratio of around 8—figures that rival or exceed major tech firms. Yet, this premium valuation has raised some concerns.
Some analysts argue Walmart may be overvalued, especially considering its net profit margin remains around 4%, in line with the retail industry average and far below tech giants: Apple (~30%), Google (25–35%), and Nvidia (50–60%).
While ad revenue is growing rapidly, it still represents a small portion of Walmart’s total sales. The company has also warned of potential slower growth in FY2025, possibly missing performance targets.
Despite these concerns, Walmart’s ability to adapt has been nothing short of impressive. By transitioning from a traditional retailer to a technology-enabled data-driven platform, Walmart has opened up new growth avenues.
If it continues investing in digital infrastructure, analytics, and value-added services, Walmart may sustain its market-leading valuation and play a growing role in shaping the global consumer ecosystem.
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